Business Law - Chapter 19

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  1. What are the major different types of business forms
    • Sole Proprietorships
    • Partnerships
    • Limited Liability Partnerships (LLP)
    • Limited Partnerships
    • Corporations
    • Limited Liability companies (LLCs)
  2. What is a sole proprietorship
    • Anyone who does business without creating an organization 
    • The owner pays personal income taxes on all profits and is personally liable for all business debts.
  3. What is a Partnership
    • Partners have unlimited liability for partnership debts 
    • Income is passed through the partnership to the individual partners who pay personal taxes on the income
  4. What is a limited liability partnerships (LLPs)
    Allow professional to avoid personal liability for the malpractice of other partners
  5. What is a limited partnership
    • one or more general partners - unlimited liability for partnership loss
    • one or more limited partners - liable only to the extent of their contributions
  6. What is a corporation
    • legal entity separate and distinct from its owners 
    • perpetual existence
    • Shareholder - owners elect directors
    • Shareholders are not (normally) personally liable for the debt of the corporation
  7. Define a limited liability companies (LLCs)
    • Operating agreement: members decide how the business will be managed and what rules will apply to the organization 
    • Limited liability of a corporation - not personally liable for debts 
    • tax benefit of a partnership - pass through taxation
  8. What are some special business forms
    • Joint venture
    • syndicate
    • joint stock company
    • business trust
    • cooperative
  9. What is a joint venture
    two or more persons or business entities in contemplation of a limited activity or a single transaction.
  10. What is a syndicate
    investment group that undertakes to finance a particular project
  11. What is a joint stock company
    a business form similar to a corporation in some respects but otherwise resembles a partnership
  12. What is a business trust
    • Created by a written trust agreement that sets forth the interests of the beneficiaries and obligations and powers of the trustee(s) 
    • Beneficiaries are not personally liable for the debts or obligations of the business trust
  13. what is a cooperative
    An association organized to provide an economic service to its members
  14. What are some types of franchises
    • Distributorship (automobile dealership)
    • Chain-style operation (fast food)
    • manufacturing/processing-plant arrangement (pepsi-cola)
  15. What laws govern franchises
    • Contract Law
    • Federal and state statutes 
    • Agency regulations - Franchise Rule
  16. What is included in a franchise contract
    • terms and conditions of the franchise
    • rights and duties of the franchiser and franchisee
    • territory
    • abide by certain standards of quality relating to the product or service
  17. How can a franchise contract be terminated
    termination date or conditions are stated in the contract
Card Set:
Business Law - Chapter 19
2013-12-10 02:59:58
Business Law

Chapter 19 - The Entrepreneur's Options
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